Lion Nathan loses its head in NZ

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The head of Lion Nathan's New Zealand beer business, Julian
Davidson, has resigned amid market concerns about the health of the
group's Kiwi brewing operations.

Lion shares have sunk more than 13 per cent this year in the
midst of poor beer sales for the entire group but it is the
performance of its Kiwi division, Lion Breweries, that is the chief
concern for some analysts.

Credit Suisse First Boston recently downgraded Lion Breweries'
2005 earnings by 10 per cent - the division accounts for one fifth
of the group's earnings - while Macquarie Research Equities
yesterday suggested it was losing supermarket sales to rival DB
Breweries.

Mr Davidson has run Lion Breweries since the start of 2002 and
has worked at Lion Nathan for 19 years but the company said there
was no connection between his departure and the division's wobbly
performance.

"Mr Davidson said when he took on the role his intention was
always to spend two or three years at the helm," the company
said.

"He has decided it is time for a change."

Lion Nathan chief executive Rob Murray recently described the
post-Christmas performance of the Australian and NZ beer divisions
as "disappointing".

Lion blamed poor weather and the introduction of the Holiday
Act, which affected pub volumes in NZ, but confirmed previous 2005
net profit guidance for the entire group of $230 million to $235
million.

Its Australian brands include Tooheys, Hahn and XXXX. It sells
Lion Red and Speights in NZ.

NZ brewing was a disappointment for Lion Nathan throughout 2004:
earnings were down 5.5 per cent to $82.3 million.

The job of running the division falls to Lion's Kiwi wine and
spirits boss, Peter Kean.